YEREVAN (CoinChapter.com) — Franklin Templeton, a financial firm managing $1.6 trillion in assets, has launched its OnChain US Government Money Fund (FOBXX) on Solana. The company announced the expansion on Feb. 12, bringing the fund to another blockchain.
FOBXX invests nearly 100% of its assets in US government securities, cash, and fully collateralized repurchase agreements. The fund aims to minimize credit risk. As of Jan. 31, 2025, it had $512 million in assets, with a seven-day effective yield of 4.2%.
A Franklin Templeton representative stated that expanding to Solana aligns with the company’s focus on layer-1 blockchains as institutional adoption increases.
FOBXX expands to multiple blockchains, including Solana
FOBXX operates on Ethereum, Avalanche, Arbitrum, Base, Polygon, and Aptos. The fund is the first US mutual fund to use blockchain technology for record-keeping and transaction processing. Each share is represented by one BENJI token, which allows for on-chain transactions and transparency.
The launch on Solana follows other blockchain expansions, reflecting Franklin Templeton’s broader approach to digital assets. The firm has continued to integrate blockchain infrastructure into its financial products.
Institutional investment in Solana grows
The FOBXX launch on Solana follows the recent introduction of the Apollo Diversified Credit Securitize Fund, another tokenized investment fund on the Solana blockchain.
Institutional investments in decentralized applications on Solana increased by 54% in Q3 2024, reaching $173 million, according to Messari.
On Feb. 10, Franklin Templeton registered a Delaware trust tied to a Solana ETF. Several asset managers have pursued similar funds, though regulatory concerns remain. Lawsuits have claimed that Solana’s native token (SOL) may be an unregistered security.
Franklin Templeton’s crypto expansion includes Bitcoin and Ethereum ETFs
Franklin Templeton has expanded its presence in crypto investments beyond the Solana network. The company launched a Bitcoin ETF in January 2024 and an Ethereum ETF in July 2024. It has also filed for SEC approval of a Crypto Index ETF, which would track multiple digital assets.
The Solana blockchain, once widely linked to memecoins, has gained institutional adoption. The SOL token, which dropped below $10 after the FTX collapse, rebounded, reaching a 52-week high of $267.80. As of February 12, 2025, SOL is trading at $192.99, reflecting ongoing market volatility despite institutional interest.
